[go: up one dir, main page]
Scribd
Upload
18 views2 pages

High-Yield Corporate Bonds - Investor - Gov

High-yield corporate bonds offer higher interest rates due to the increased risk of default associated with the issuing companies. These bonds are typically issued by companies that are highly leveraged or facing financial difficulties, as well as smaller or emerging companies with unproven histories. Investors are compensated for the higher risk through these elevated interest rates.

Uploaded by

Devlin Storm Wolfe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
18 views2 pages

High-Yield Corporate Bonds - Investor - Gov

High-yield corporate bonds offer higher interest rates due to the increased risk of default associated with the issuing companies. These bonds are typically issued by companies that are highly leveraged or facing financial difficulties, as well as smaller or emerging companies with unproven histories. Investors are compensated for the higher risk through these elevated interest rates.

Uploaded by

Devlin Storm Wolfe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Investor.

gov
U.S. SECURITIES AND
EXCHANGE COMMISSION

High-yield Corporate Bonds


A high-yield corporate bond (/news-alerts/investor-bulletins/what-are-high-yield-
corporate-bonds) is a type of corporate bond (/investing-basics/investment-
products/corporate-bonds) that offers a higher rate of interest because of its higher risk of
default. When companies with a greater estimated default risk issue bonds, they may be
unable to obtain an investment-grade bond credit rating. As a result, they typically issue
bonds with higher interest rates in order to entice investors and compensate them for this
higher risk.

High-yield bond issuers may be companies characterized as highly leveraged or those


experiencing financial difficulties. Smaller or emerging companies may also have to issue
high-yield bonds to offset unproven operating histories or because their financial plans
may be considered speculative or risky.

For additional information, please visit the following links.

Investor Bulletin: What are Corporate Bonds (/additional-resources/news-alerts/alerts-


bulletins/what-are-corporate-bonds)
Investor Bulletin: What are High-yield Corporate Bonds (/additional-resources/news-
alerts/alerts-bulletins/what-are-high-yield-corporate-bonds)
Investor Bulletin: Interest Rate Risk (/sites/investorgov/files/ib_interestraterisk.pdf)
MSRB Investor Guide 2012 (http://www.msrb.org/Municipal-Bond-Market/Investor-
Resources/Investor-Toolkit.aspx)
Bond Funds and Income Funds (http://www.sec.gov/answers/bondfunds.htm)
Callable or Redeemable Bonds (http://www.sec.gov/answers/callablebonds.htm)
Financial Industry Regulatory Authority (FINRA) (http://www.finra.org)
Information on CUSIP numbers (http://www.cusip.com)
Late Payment of Interest on Bonds (http://www.sec.gov/answers/bondint.htm)
Municipal Securities Rulemaking Board (MSRB) (http://www.msrb.org)
MSRB Electronic Municipal Market Access (EMMA) (http://emma.msrb.org/)
The Securities Industry and Financial Markets Association (SIFMA)
(http://www.investinginbonds.org)

You might also like